1. PROJECT SUMMARY
This project considers the opening of a mini-golf court with 18 playing tracks in a city with a population of more than 1 million people. The club will have an entertainment format, providing services for playing mini-golf, selling drinks and fast food. Target audience of the project: families with children and schoolchildren (35%), young people aged 18 to 35 years (30%), schoolchildren (20%), clients over 35 years old (15%). The price segment of the project is medium.
Investments in the project will amount to 2,014,000 rubles, the payback period is 9 months. work. Initial investments will be used to equip the playing area, purchase mini-golf courses, furnish recreation areas, create and equip a mini-bar, purchase sports equipment, obtain permits, advertising and form a working capital fund to cover expenses in the first months of operation.
Revenue upon reaching the planned sales volumes – 400-800 thousand rubles, net profit – 42.5-350 thousand rubles. The profitability of the court in terms of reaching the planned sales volumes is 32%. The financial calculations of this business plan are given for a three-year period of activity, taking into account seasonality.
Table 1. Main indicators of the project
|Starting investments, rub.||2014000|
|Payback period (PP), months||fifteen|
|Revenue per month, rub.||400,000 – 700,000|
|Net profit per month, rub.||67,000 – 290,000|
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
Mini golf is a sports game in which the participants compete with each other by driving a small ball into special holes with clubs and trying to cover the allotted distance from several tracks in the minimum number of strokes. Minigolf officially appeared in 1953, after the Swiss architect Paul Bonguigi created a minigolf course and patented the name minigolf. After the creation of the first artificial turf courses, minigolf began to spread rapidly around the world, the rules and courses were standardized. Already in 1963, the International Minigolf Federation was established, which in 1993 was reorganized into the World Sports Minigolf Federation (WMF). Since 2003, Russia has become a member of this association, which now includes 63 countries. Despite,
Since the potential of sports mini-golf has not yet been fully exploited and the demand for it is low, this project plans to open an amateur mini-golf court, i.e., one that does not require certification from the Russian Golf Association. An entertainment format suitable for family leisure and leisurely pastime in the company will be chosen for the opening of the court. It is this format that is most promising from a business point of view today and, in combination with additional sources of income, for example, the sale of drinks and snacks, can bring a stable profit. Services of playing mini-golf are increasingly being offered by sanatoriums, country hotels and recreation centers.
The target audience is divided into four main segments: the majority are families with children – 35% and young people aged 18 to 35 – 30%. Another 20% of clients are schoolchildren and 15% are clients over 35 years old.
Figure 1. Target audience of mini-golf clubs.
According to the survey results, 50% of clients name the main reason for choosing mini-golf as a new type of recreation, 25% of the respondents name the opportunity for adults and children to play together as an advantage.
Figure 2. The main reason for playing mini-golf
The project plans to organize the work of the club in two formats: summer and winter. During the summer period, the club will operate on a rented outdoor site, in the cold season the site will move to a nearby indoor area. This format of work implies the acquisition of a modular platform (for more details, see paragraph 5).
Summarizing the above, we note several advantages of this direction:
- publicity. Playing mini golf does not require any special skills and does not require good physical shape. It is enough for the player to stand on his feet and hold the club.
- possibility of team play. Minigolf is valued as entertainment for families and companies, and can be used as part of corporate events.
- no large area required. Unlike conventional golf, the requirements for spaces are much smaller, and the playing field itself can be located both outdoors and indoors.
- lack of need for qualified personnel. The entertainment format does not require the hiring of instructors and coaches.
- novelty. Despite a decent history, in our country mini-golf is regarded as a new form of entertainment that has replaced bowling and billiards.
- absence of competitors. This type of entertainment is poorly represented in the market and is characterized by a low level of competition.
3. DESCRIPTION OF GOODS AND SERVICES
The main service of the court will be the organization of mini-golf. The court will be open daily from 10:00 to 22:00. A summer bar will operate at the court, where fast food and drinks will be sold, a recreation area with hammocks. The institution will be aimed at visitors with an average level of income, offering services at affordable prices and positioning mini-golf as mass entertainment. The site can also be used for weddings, corporate parties and birthdays. More details about the services – in the table. 2.
Table 2. Goods and services
|No.||NAME||DESCRIPTION OF THE PRODUCT OR SERVICE||UNIT COST, rub.|
|Provision of services|
|one||One game||Adult game ticket (18 lanes)||300|
|2||Replay||Repeat ticket for the game||150|
|3||Child ticket||Children’s game ticket||200|
|4||Subscription for 1 month||Subscription for free access to the court for 1 month||5000|
|5||Court rental||Mini golf course rental with 18 lanes||from 16 000/negotiable|
|6||storage cell||Using a lockable storage box||100|
|7||Hammock rental||Hammock rental||150/hour|
|eight||WiFi||Wireless internet usage||for free|
|Sale of goods|
|nine||fast food sale||Grill burgers, rolls, snacks, salads||220|
|ten||Sale of drinks||Soft drinks, beer||110|
4. SALES AND MARKETING
The key factors for the success of a mini-golf court will be: convenient location, competent and visually attractive layout of the site, affordable prices. As a competitive advantage, at the initial stage, it is recommended to set lower prices for subscriptions compared to competitors in order to form a base of regular customers. Also, a necessary addition would be the presence of a cafe, bar or restaurant at the court, since most customers visit the courts in the evening after work and are not averse to having a bite or a drink. This project involves the creation of a mini-bar for the sale of fast food and drinks.
At the opening stage of the court, a small show will be arranged with a drawing of several season tickets for free / discounted access to the club and other prizes. Such events are planned to be carried out to stimulate demand in the main period of activity. Other ways to promote services will be:
- distribution of flyers and discount coupons to passers-by;
- placement of information about the club on specialized catalog sites and announcement sites;
- placement of paid advertising materials in online media;
- placement of paid posts on social networks (popular city publics and communities).
The project also involves the creation of its own one-page page with basic information about the club and communities in social networks that will illustrate the life of the club and advertise its services.
5. PRODUCTION PLAN
Location. The most suitable options for placing a mini-golf court are park and forest park areas, squares, student campuses, shopping centers, sports clubs (for indoor golf clubs). In our case, it is planned to rent a piece of land from one of the city parks. To organize an entertainment mini-golf center, an area of 700 square meters will be required. meters, where a playground, a hammock area, a mini-bar will be placed. The project involves the lease of a site in the summer and the transfer of tracks to the territory of a sports complex, located in close proximity to an open area in the cold season. There is parking near the court.
Planning and design. The selected space requires a competent layout. The site should be planned so that customers quickly move from lane to lane, but at the same time do not create a crowd. Care must also be taken to ensure that the selected site is visually attractive to customers, so that it is comfortable and pleasant to be in it. Since golf is associated with calmness, unhurriedness and peace, a good option would be to land on the territory of green spaces, create artificial reservoirs and alpine slides. To create such an environment, it is recommended to involve specialists in landscape design. The cost of design work, taking into account the development of a design project (2.5 thousand rubles / hundred square meters), design services (1.5 thousand rubles / hundred square meters) and the purchase of materials, will amount to 490 thousand rubles.
Equipment. The court will be equipped with a modular mini-golf course with 18 lanes of various lengths. The advantage of modular tracks is ease of assembly / disassembly, safe handling and storage, which allows you to extend the life of the product. The playground is made of quality materials: impregnated dried board and waterproof plywood, PVC artificial grass and aluminum profile. Tracks will be purchased from a specialized organization. The cost of site installation is included in the price of the tracks.
Table 3. List of equipment
|No.||Name||price, rub.||Quantity, rub.||Cost, rub.|
|Mini golf equipment|
|one||Mini golf tracks||15,000||eighteen||270 000|
|2||Mini golf club (pater)||3 500||thirty||105 000|
|3||Mini golf ball||700||60||42 000|
|4||Arbor wooden||10,000||4||40 000|
|5||Garden table with benches||6000||4||24 000|
|6||Hammock||3 500||6||21 000|
|7||Large street pavilion||360 000||one||360 000|
|eight||Refrigeration cabinet for drinks||30,000||2||60 000|
|ten||Fridge||25 000||one||25 000|
|eleven||Wooden chair||3000||eight||24 000|
|12||Shelves for inventory, utensils, etc.||20 000||one||20 000|
|thirteen||Wooden bar stool||3000||6||18 000|
|fourteen||Cabinet with storage cells||12 000||one||12 000|
|sixteen||Grill contact pressure||10,000||one||10,000|
Production plan. On average, the passage of one set of mini-golf is about 2-2.5 hours, and therefore the full load of the court will be more than 320 people with a 12-hour working day. However, such indicators are possible only theoretically – in this business plan, the calculations are based on attendance in the amount of 40 people. on weekdays, 100 people – on weekends, total per month about 1680 people per month or 500 thousand rubles (with the cost of the game in the amount of 300 rubles). Considering another key point of income – income from the sale of fast food and drinks, with such attendance, the club’s revenue per season will reach about 600-700 thousand rubles, with a net profit of 230-290 thousand rubles, which will fully cover possible losses in the off-season. Reaching the planned sales volume is planned for the 4th month of operation.
6. ORGANIZATIONAL PLAN
The business will be registered as an individual entrepreneur, the taxation system will be simplified (USN 6%). Since the entertainment format of mini-golf is chosen in this project, the involvement of experienced sports coaches will not be required. It is enough to hire several administrators working in shifts, bartenders and security guards. The duties of administrators will include accepting payments, issuing sports equipment to customers, and providing all conditions for the game. The bartender will be in charge of fulfilling customer orders (selling food and drinks, preparing snacks and fast food). The role of the club manager will be taken by an individual entrepreneur who will also deal with the promotion of the club. Accounting and security services are supposed to be outsourced.
Table 4. Staffing and payroll
|No.||Position||Salary, rub.||Quantity, pers.||FOT, rub.|
|one||Administrator||25 000||3||75 000|
|Social Security contributions:||37 500|
|Total with deductions:||162 500|
7. FINANCIAL PLAN
The financial plan includes all income and expenses of the project and is designed for a three-year period of activity. Starting investments will amount to 2,014,000 rubles. and will be spent on the arrangement of the playing area, the purchase of mini-golf courses, the furnishing of recreation areas, the creation and equipping of a mini-bar, the purchase of sports equipment, the issuance of permits, advertising and the formation of a working capital fund to cover expenses in the first months of operation.
Table 5. Investment costs of the project
|landscape design||490 000|
|Equipment and inventory||1,074,000|
|Purchase of products||250 000|
|working capital||150 000|
The expenditure part will include fixed and variable costs. Fixed costs in this business plan include rent, advertising, security and bookkeeping, electricity, and depreciation. Depreciation costs are calculated on a straight-line basis over a useful life of 5 years. The variable part will mainly be the cost of buying groceries for the bar. A detailed financial plan is provided in Annex 1.
Table 6. Fixed costs of the enterprise
|No.||NAME||Amount per month, rub.|
|And that:||102 320|
8. PERFORMANCE EVALUATION
The payback period of the project with an initial investment of 2,014,000 rubles. is 15 months. Net profit upon reaching the planned sales volumes will be 230-290 thousand rubles. It is planned to reach the planned sales volume for the 4th month of work. Profitability of the project – 31%.
9. RISKS AND WARRANTY
To assess the risk component of the project, it is necessary to analyze external and internal factors. External factors include threats related to the economic situation in the country, markets. To internal – the effectiveness of the management of the organization.
The specifics of the institution determines the following external risks:
– reaction of competitors. The risk can be assessed as minimal, since the niche is poorly filled. To neutralize it, it is necessary to form your own client base, constantly monitor the market, and have a customer loyalty program;
– low-quality inventory;
– refusal to provide rent or increase in the cost of rent. To reduce this risk, it is necessary to conclude a long-term lease and carefully choose the landlord.
– falling effective demand. This risk can be mitigated by developing effective loyalty programs, including discount subscriptions, happy hours, etc.;
Internal risks include:
– problems with personnel, under which there is a turnover of personnel, lack of motivation of employees. The risk is reduced at the stage of recruiting personnel that meets all requirements. It is also necessary to provide for a system of bonuses for personnel.
– equipment failure and production downtime. The risk is leveled by carrying out regular maintenance of the equipment in order to maintain its performance;
– spoilage of bar products due to low demand, breakdown of storage and cooking equipment, improper storage. The risk has a low degree of probability due to the purchase of products: a) in small volumes, b) the most popular items, c) interchangeable ingredients. Proper planning, exclusion of unprofitable dishes from the menu, and adherence to equipment operation standards will help reduce the risk.
– Decrease in the reputation of the establishment among the target audience due to errors in management or a decrease in the quality of services. It is possible to mitigate the risk with constant monitoring of the quality of services and products, receiving feedback from the institution’s customers and taking corrective measures.